IRA’s Green Energy Tax Credits Lose Their Punch Because They Try to Do Too Much

The Inflation Reduction Act (IRA) recently signed by President Biden includes more than $200 billion energy tax subsidy in the next decade. As its supporters say, it is the largest package of stimulus aimed at slowing climate change ever implemented by Congress. But it also puts America on a relatively inefficient path to clean energy. Broadly speaking, the problem is a familiar one: While most economists prefer a stick (higher tax) to encourage alternatives by raising the price of fossil fuels, most politicians prefer a carrot-tax subsidy to encourage consumers…

China and India give $24 billion in aid to Putin in energy race

Russia has earned $24 billion from selling energy to China And India only three months after the invasion of UkraineIt shows how high global prices are limiting efforts by the US and Europe to punish the president Vladimir Putin, China spent $18.9 billion on Russian oil, gas and coal in the three months to the end of May, nearly double the amount a year earlier, the latest customs data shows. Meanwhile, India paid $5.1 billion in the same period, more than five times the value a year ago. This is…

Powell: Wall Street ends lower after Powell’s remarks, as energy stocks pull up

Wall Street’s main indices ended with thin losses after choppy trading on Wednesday as energy stocks weighed in and investors digested Federal Reserve Chairman Jerome. PowellComment on the central bank’s objective of reducing inflation. After opening lower, major US indices erased losses following Powell’s testimony before a Senate committee, but then faded closer. Powell said irrigated It is “strongly committed” to easing inflation running at 40-year highs, while policymakers are not trying to cause a recession in the process. Investors are trying to assess how far the stock could fall…

Energy, Taxes, Interest Payments, and Mistakes

What impact will the TCJA have on the US energy sector? a new paper from tpc, previously published by Resources for the Future, combines qualitative analysis with projections from TPC’s investment and capital model to show how the Tax Cuts and Jobs Act (TCJA) will affect the energy business. The study found that the TCJA had initially substantially reduced the sector’s effective tax rates. The long lasting tax deduction will be much less as many provisions of the TCJA are about to expire. By 2027, many energy firms will face…